CEO Thompson Reckons Yahoo Has Done “Way Too Much”

If you're a jack of all trades, you won't master any of them. It's an age old saying, and an age old problem, one which Yahoo has been suffering from according to its CEO.

Scott Thompson, speaking during an earnings conference call after his first full quarter as Chief Exec, noted that revenue was flat, but earnings were up. He further noted that while big changes were already occurring, more needed to be done.

If you've been following the Yahoo news lately, you'll know that this month the company has axed 2,000 jobs, and restructured itself into three core divisions. Thompson said that following these moves, the company needed to focus in order to step up a gear in terms of growth.

Thompson commented: "Yahoo has been doing way too much for too long and was only doing a few things really well."

It's a simple message, then; less is more, and Yahoo must return its focus to the core products which made it, such as mail and finance, and not the projects on the periphery. To that end, Thompson asserts that some 50 Yahoo properties will either be shut down, or "transitioned" (selling off or otherwise), to narrow that focus down.

He said: "Yahoo has built processes that were originally intended to help us scale but they've become way too complex and stifled innovation."

That doesn't mean that no further properties outside the core business will be opened up in the future, just that for now, Yahoo's tentacles are being retracted - and while revenue is likely to be hit by the closures, profitability should rise.

Source: Techcrunch